This week, the Reserve Bank of India (RBI) unveiled two major updates to the Unified Payments Interface (UPI) system, designed to enhance its functionality and broaden its usage.
Elevated Tax Payment Limits for UPI Transactions:
To support taxpayers, the RBI has announced an increase in the UPI transaction limit for tax payments, elevating it from ₹1 lakh to ₹5 lakh per transaction. This significant fivefold boost is expected to facilitate the digital payment of larger tax amounts. ‘This adjustment will make tax payments through UPI even more convenient for consumers,’ commented RBI Governor Shaktikanta Das at the 50th Monetary Policy Committee session on Thursday.
New “Delegated Payments” feature:
The introduction of the ‘Delegated Payments‘ feature marks the second major enhancement to UPI. This new capability will let a primary user permit another person (secondary user) to perform UPI transactions from their bank account, up to a specified limit. ‘With this feature, one can authorize another to make UPI transactions from their account without needing a separate UPI-linked bank account for the secondary user,’ Governor Das elaborated. This development is projected to boost UPI adoption, especially among children and elderly individuals who may not possess their own UPI-linked accounts.
These steps towards expansion of UPI marks a revolutionary shift in electronic payments, positioning India at the forefront of digital financial technology and thereby underscores India’s commitment to improving financial inclusion, bringing banking services to a broader segment of the population.
